We recently presented at WEI's Back to Business School program on strategies early-stage companies can take to identify and protect intellectual property. The Atlanta Women’s Entrepreneurship Initiative provides access to the human, educational, and financial capital women entrepreneurs need to establish their company. It was a pleasure to speak with the many talented women associated with WEI.
Protecting IP is often an important and overlooked step for early-stage companies. However, taking early steps to protect IP can help establish a company’s unique selling points, products, or services in the market. Here are 5 takeaways from our presentation:
1. Ensure that all employees and contractors have signed an IP assignment agreement. It's crucial to have every employee (even founders!) and independent contractor sign an IP assignment agreement. This legally transfers ownership of any IP rights in work product to the company, ensuring that your company retains control over its innovations and prevents disputes over ownership down the road.
2. Include non-disclosure provisions in agreements. In any collaboration or partnership, safeguard your company's confidential information by including non-disclosure provisions in agreements. These provisions establish a legal obligation for parties involved to keep sensitive information confidential, minimizing the risk of intellectual property leaks or unauthorized disclosures. Non-disclosure provisions should also be included in employment and independent contractor agreements.
3. Conduct a trademark search for your company name and product names. Before finalizing your company or product names, conduct a thorough trademark clearance search to be sure your marks are not already being used by another party. This search helps prevent potential trademark infringement issues that could lead to legal battles or rebranding costs, which can be detrimental to an early-stage startup. Not only is rebranding costly, but rebranding could cause you to lose your goodwill in the marketplace.
4. Mark and police your trademarks. Once you've started using your marks, include the ™ symbol for unregistered marks and the ® symbol for registered marks to assert your ownership. Regularly monitor the marketplace for any third parties that may be using your trademarks in an unauthorized manner by setting up Google Alerts. This proactive approach safeguards your brand identity and reputation.
5. Be aware of the 1 year disclosure deadline for patent applications. Publicly disclosing your invention, such as through a public presentation, product launch, or investor pitch, starts a one-year countdown for filing a patent application. Failing to meet this deadline can result in the loss of patent rights, so careful timing is essential in the early stages of your company's development.
